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    Garcia, Rochene I - Reaction Paper For Group 1's Presentation

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    Rochene Garcia
    Group 1's presentation covered various topics related to taxation in the Philippines including revenue generation, national revenue, and local revenue. The main points are: 1) There are two main sources of government revenue - tax revenue and non-tax revenue. Tax revenue comes from income tax, VAT, tariffs and duties while non-tax revenue is from entities like the Bureau of Treasury, privatization proceeds, and PAGCOR. 2) The Bureau of Internal Revenue and Bureau of Customs are the largest contributors to tax revenue. Local governments also generate local revenue through various taxes levied within their jurisdictions. 3) Taxation is a system of compulsory contributions used by the government to fund public expenditures and

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    Garcia, Rochene I - Reaction Paper For Group 1's Presentation

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    Rochene Garcia
    238 views4 pages
    Group 1's presentation covered various topics related to taxation in the Philippines including revenue generation, national revenue, and local revenue. The main points are: 1) There are two main sources of government revenue - tax revenue and non-tax revenue. Tax revenue comes from income tax, VAT, tariffs and duties while non-tax revenue is from entities like the Bureau of Treasury, privatization proceeds, and PAGCOR. 2) The Bureau of Internal Revenue and Bureau of Customs are the largest contributors to tax revenue. Local governments also generate local revenue through various taxes levied within their jurisdictions. 3) Taxation is a system of compulsory contributions used by the government to fund public expenditures and

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    Group 1's presentation covered various topics related to taxation in the Philippines including revenue generation, national revenue, and local revenue. The main points are: 1) There are two main sources of government revenue - tax revenue and non-tax revenue. Tax revenue comes from income tax, VAT, tariffs and duties while non-tax revenue is from entities like the Bureau of Treasury, privatization proceeds, and PAGCOR. 2) The Bureau of Internal Revenue and Bureau of Customs are the largest contributors to tax revenue. Local governments also generate local revenue through various taxes levied within their jurisdictions. 3) Taxation is a system of compulsory contributions used by the government to fund public expenditures and

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    238 views4 pages

    Garcia, Rochene I - Reaction Paper For Group 1's Presentation

    Uploaded by

    Rochene Garcia
    Group 1's presentation covered various topics related to taxation in the Philippines including revenue generation, national revenue, and local revenue. The main points are: 1) There are two main sources of government revenue - tax revenue and non-tax revenue. Tax revenue comes from income tax, VAT, tariffs and duties while non-tax revenue is from entities like the Bureau of Treasury, privatization proceeds, and PAGCOR. 2) The Bureau of Internal Revenue and Bureau of Customs are the largest contributors to tax revenue. Local governments also generate local revenue through various taxes levied within their jurisdictions. 3) Taxation is a system of compulsory contributions used by the government to fund public expenditures and

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    Garcia, Rochene I.

    MPA 622/2:30pm-5:30pm
    Reaction Paper for Group 1’s Presentation

    The topics of Group 1 are about Taxation in the Philippines, Revenue Generation,

    National Revenue and Local Revenue. I have learned that Fiscal Policy refers to the

    measures employed by governments to stabilize the economy, specifically by

    manipulating the levels and allocations of taxes and government expenditures. Fiscal

    measures are frequently used in tandem with monetary policy to achieve certain goals.

    There are two main sources of revenue namely: Tax Revenue and Non-Tax Revenue.

    Tax Revenues are generated from the income taxes, expanded value added tax or E-Vat,

    tariffs and duties while Non-Tax Revenues are coming from the Bureau of Treasury,

    Privatization and PAGCOR. Tax collections comprise the biggest percentage of revenue

    collected. Its biggest contributor is the Bureau of Internal Revenue (BIR), followed by the

    Bureau of Customs (BOC). A person’s income, wages and profits arising from property,

    practice of profession conduct of trade or business or any stipulated in the National

    Internal Revenue Code of 1997 (NIRC), less any deductions granted is called “Income

    Tax”. The Tax Reform for Acceleration and Inclusion or commonly known as TRAIN aims

    to create a simpler, fair and more efficient system, as per the constitution, where the rich

    will have a bigger contribution and the poor will benefit more from the government’s

    programs and services. This was in effect last January 2018. Expanded Value Added Tax

    is a form of sales tax that is imposed on the sale of goods and services and on the import

    of goods into the Philippines. It is a consumption tax (those who consume more are taxed

    more) and an indirect tax, which can be passed on to the buyer. It was enacted to

    streamline and restructure the present VAT system and to provide additional revenue for
    the government through increased tax rates, lifting exemptions, and subjecting to tax

    transactions not previously covered by tax, in order to balance the government’s budget

    and to curb the existing fiscal deficit. The Bureau of Customs (BOC) imposes tariffs and

    duties on all items imported into the Philippines. According to Executive Order 206,

    returning residents, Overseas Filipino Workers (OFW's) and former Filipino citizens are

    exempted from paying duties and tariffs. There are two kinds of duties – Import and Export

    duties. The Non-Tax Revenue makes up a small percentage of total government revenue

    (roughly less than 20%), and consists of collections of fees and licenses, privatization

    proceeds and income from other state enterprises. The Philippine government has been

    passing what used to be government-owned and controlled companies into the hands of

    private sectors. The government's Privatization Program is handled by the inter-agency

    Privatization Council and the Privatization and Management Office, a sub-branch of the

    Department of Finance. Some of the privatized corporations are PLDT, MWSS or

    Maynilad, MERALCO, NAPOCOR, PAL and PNB. The Philippine Amusement and

    Gaming Corporation (PAGCOR) is a government-owned corporation established in 1977

    to stop illegal casino operations. PAGCOR is mandated to regulate and license gambling

    (particularly in casinos), generate revenues for the Philippine government through its own

    casinos and promote tourism in the country. I have also learned that Taxation is a system

    of compulsory contributions levied by a government or other qualified body on people,

    corporations and property in order to fund public expenditures. Aside from Income Tax

    and E-Vat there are also Estate Tax which is a tax that on the right of the deceased person

    to transmit to his lawful heirs or beneficiaries; Donor’s Tax which is paid upon the transfer

    by any person, resident or nonresident of the property (whether real or personal, tangible
    or intangible) by gift direct or indirect; Other Percentage Tax which is based on a certain

    percentage of the gross selling price or gross value in money of goods sold, bartered,

    exchanged, or imported, or gross receipts or earnings derived by a person engaged in

    the sale of services; Excise Tax which is imposed on certain specified goods

    manufactured or produced in the Philippines for domestic sale or consumption or for any

    other disposition and on goods imported into the Philippines; and Documentary Stamp

    Tax which is a tax on documents, and papers evidencing the acceptance, assignment,

    sale or transfer of an obligation, right or property incident thereto; Travel Tax which was

    promulgated in line with “the policy of the Government to lessen the restriction on foreign

    travel”, “simplify travel regulations”, and at the same time, “to provide adequate funds for

    Government programs.” ; Private Motor Vehicle Tax which aims to rationalize the

    structure of the tax on private motor vehicles by basing the same on ability to pay of the

    owners thereof; and Energy Tax which is imposed in view of the need to discourage the

    uneconomic consumption of fuel and the need for additional revenue to support economic

    development. I am also enlightened that the revenue generated by the Local Government

    Unit (LGU) is called Local Revenue. There are different taxes imposed in LGU which are

    the following: Tax on Transfer of Real Property Ownership, Tax on Business of Printing

    and Publication, Franchise Tax, Tax on Sand, Gravel and Other Quarry Resources,

    Distribution of the Tax on Sand, Gravel, Professional Tax, Amusement Tax, Annual Fixed

    Tax For Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of,

    Dealers, or Retailers in, Certain Products, Tax on Business and Community Tax. There

    are also different kinds of fees and charges imposed and collected in LGU like fees for

    sealing and licensing of weights and measures, fees for securing a barangay clearance,
    public utility charges and toll fees. Lastly, I have learned that as stated in Article VI,

    Section 28 of the Constitution of the Republic of the Philippines, “the rule of taxation shall

    be uniform and equitable” and that Congress shall evolve a progressive system of

    taxation. And there are exempted transactions like the agricultural and marine food

    products in their original state; fertilizers, seeds, seedlings, fingerlings, and feeds and

    feed ingredients; importation of personal and household effects of persons resettling in

    the Philippines; importation of professional instruments, wearing apparel, and domestic

    animals; services subject to percentage tax; agricultural contract growers and millers;

    health care services; educational services; agricultural cooperatives, and cooperatives

    that are non-agricultural and non-electric in nature and many more.

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